Townsend hit .600 with 34 walks as a high school senior and was named the Gatorade Player of the Year for Delaware. As a college freshman, he hit .338/.477/.515. He had surgery that season for an injured shoulder. In 2008, the sophomore batted .323/.419/.615 with 55 RBI and a team-high 14 homers in 53 games. As a junior, he won national attention by hitting .434/.512/.858 with 24 homers and 77 RBI. He was 13th in NCAA Division I in average, 5th in slugging (right behind Marc Krauss), 8th in home runs and 5th in total bases (182). He was second in the Sun Belt Conference in average behind SBC Player of the Year Bryce Brentz. He was named first-team All-American in the outfield by the American Baseball Coaches Association and Collegiate Baseball while Baseball America picked him third team (they chose Krauss, Jason Kipnis and Kent Matthes as their outfielders).

In 2010, he missed several months due to hamstring problems. After his return, he played well for the GCL Orioles (5 for 13, 4 doubles, walk) and Delmarva Shorebirds (.342/.398/.556, 26 RBI in 30 games) before moving up to the Frederick Keys.